Govt to relax norms so Apple can open stores in India

It has been reported earlier that Apple is trying to open its exclusive retail stores in India and is seeking certain exemptions. Now a report in Times of India says that the government is likely to relax certain norms related to local sourcing of material for Apple so that the company can set up the fully-owned exclusive retail shops in the country.

While the government now allows a foreign company to set up its exclusive stores in India, it requires that the company should source at least 30 per cent material for the store from within the country. However, Apple has argued that the technology it uses in its stores is state-of-the-art and has sought an exception from the local sourcing clause.

According to The Times of India, the government, after talking to Apple officials, has agreed to make an exception. "Their products certainly meet the requirement for waiving the local sourcing clause," a government official told TOI.

The favourable decision on Apple's request can come in a few days, notes the TOI report.

For Apple India has emerged an important market because it has a strong brand recognition here. The company in the last two years has also seen an increase in iPhone adoption in India because of phones like the iPhone 4S and the iPhone 5, which have sold well here because of their comparatively low price. These are old iPhones and hence Apple and its third-party retail partners have managed to sell them here at a somewhat lower price.

In its recent market report, IDC had highlighted that Apple was doing well in India's high-end phone market. "Apple regained the top position in above $300 smartphone market with 42.1 per cent share with the launch of iPhone 6S and 6S plus in addition to the price correction for iPhone 5S, 6 and 6 Plus," the research firm had noted last month.